Wednesday, August 20, 2003

U.S. mortgage applications last week fell 10.7 percent to their lowest level in more than a year, an industry survey said on Wednesday, as rising rates cut into demand for buying a home or refinancing a loan. . . .

With rising rates, the number of mortgage applications filed in the week ended August 15 was more than 60 percent lower than in the last week of May, when mortgage applications peaked, according to the group.

That decrease has come mainly from a decline in refinancing. Refinancing applications last week were over 70 percent lower than in the last week of May.

According to the Mortgage Bankers Association of America, the refinance share of mortgage activity fell to 53.4% of total applications, down from 77.3% in mid-June. Considering the MBAA's chief economist suggests the bottom of this decline is around 20-25%, we've got quite a long ways yet to fall.